Brits ‘Look To Reduce Monetary Pressures’
Millions of Britons are looking to reduce pressure on their finances, new figures show.
Research carried out by Sainsbury’s Finance indicates that in the six months leading up to July a total of some 4.3 million people will be looking to transfer debts on their credit cards, at an average amount of 36.74 million pounds per day. Overall, a total of 6.68 billion pounds is to be switched ahead of the summer. Although the typical person is planning to switch some 1,555 pounds in credit card debts, an estimated 181,000 Britons are looking to shift more than 5,000 pounds. Furthermore, about 95,000 cardholders aim to transfer at least 10,000 pounds.
The financial services firm also indicated that more than a third (35 per cent) of credit card-holding Britons are currently paying interest on their balance. Meanwhile, men appear to be more likely to want to ease their financial burden. Males account for some 54.3 per cent of all those looking to transfer their balance ahead of July, with women making up 45.7 per cent of the total.
Following on from shifting debts to a more manageable repayment plan, it may be possible that consumers can meet other demands on their spending - such as UK personal loans, credit cards and utility bills - more effectively.
Additionally, the study showed that, on the whole, consumers living in the south of England are looking the most towards shifting their credit card debts. Some 13 per cent of people from the south-east want to do this over the next six months, with this proportion rising to 15 per cent for Britons resident in the south-west of the country. Just under one in ten (nine per cent) of Londoners are looking to do this.
In comparison, just six per cent of consumers living in the West Midlands want to transfer credit card balances. Meanwhile, five per cent of people from both Scotland and Wales plan to sign up for such borrowing deals.
Commenting on the figures, Donald MacLeod, head of cards at Sainsbury’s, said: “It’s not surprising that zero per cent balance transfers are popular, our research shows that there are an estimated five million people with outstanding balances who are not only incurring interest but also admit that it may take them longer than one month to clear their spend.” He went on to claim that when choosing a card for the purposes of debt transferal, consumers should carefully consider any purchases they plan on making and whether they will be covered by the zero per cent offer period.
For those looking to further tackle their attempts at the management of fiscal matters, taking out a low-rate secured loan might be recommended. In applying for a cheap secured loan, borrowers could find that they can pay off a number of financial demands quickly and are left with a fixed monthly repayment, something which may not be the case with credit cards once their zero per cent deal expires. However, before making a loan application it could be advisable for prospective borrowers to get a copy of their credit history file. Speaking recently, Neil Munroe, director of external affairs at Equifax, reported that taking out a financial history document could help them to understand what they need to do to successfully apply for credit.
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